Is it better to own your own home or to rent and save money in the bank with high interest return?

Answer 1

There is a great book called the "automatic millionaire".

It says that most of us have no will power and in order to build wealth we have to set up systems to build our wealth automatically so that we don't have to think about it on a daily basis.

It says buying your own home is the very basic first thing to do, then you build from there.

Think about it- just living there for several years you will build wealth almost by mistake. If you rent most people will spend the other money and not invest.

Answer 2

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Answer 3

In most cases it is better to own than to rent. No bank will pay high enough interest to make renting a better deal. However, if you will only be living in an area for a short period of time, or, if house prices are falling, then renting might be the better option for the short term.

Answer 4

Depends on LOTS and lots of factors; e.g., how much rent versus how much for a mortgage payment. In other words, you've skewed the question by saying that you can "save" money renting, which may or may not be true! Maybe an apartment rents for $600 per month. WHAT IF you're mortgage payment was only $500 per month? You'd be money ahead buying, right? UNLESS ... the house was in horrible disrepair and you spent on average $300 a month in maintenance. THEN you'd be money ahead renting, right? UNLESS ... the housing market was soooooo hot that houses in your neighborhood appreciated at 3 percent per month (or 36 percent per year). THEN you'd be money ahead buying, right?

I hope that you get the point that there are MANY factors that make renting a better option for some and buying a better option for others. Weigh those factors and make a decision that makes sense for YOU, in YOUR AREA, given your own personal aversion to risk, the housing market, your hopes, dreams, and priorities, etc.

Answer 5

Interest rates are really low now, so you aren't likely to get a high interest return.

On the other hand, home prices are falling. Wait until the winter when buyers are really scarce and pounce then. You'll get even lower prices then.

Then sit on the house for 5-10 years if you plan on selling it. If you already have a house, then keep it as a rental property and hire a property management company to take care of that for you. If this is your first home, then prepare to live in it for a while.

Answer 6

There's more then one school of thought here. You see some areas of Real Estate are on the rise, jumping dramatically. If you live in one of these places you may be able to make a very high come back on your investment but, you must carefully investigate the options here.

A bank can only give you a set amount but, there's a guarantee on it, while the Real Estate will fluctuate back and forth and must be watched carefully. If your a gambler, Real Estate, if your a careful person, the bank.

Answer 7

It is much better to own your own house. By owning your own house, you build wealth in the form of property value. Renting forces you to make payments on something that you can never own. So at the end of the day, with sometimes little difference in payments, someone who bought a house would have much more than a renter, who paid that whole time to own nothing. The final stats are something like this: Homeowners are worth, on average, 40 times more monetarily than renters.

Answer 8

Yes that is true but when you decided to leave your own home you as a general rule will make some money on it. Property rise at an average of 4% annually. So although it does cost more if you can afford to buy I would say go for it absolutely

Answer 9

You want a simple answer: Easier to own the house. The End.

Answer 10

If you find a bank that is paying high-interest...let us know!